Oman plans to invite bids to build a $3.5bn steam cracker plant with an annual production capacity of 1 million tonnes of petrochemical products, two sources close to the project said on Tuesday.
The planned cracker would be built in the northern industrial port city of Sohar and produce polypropylene and polyethylene.
The project will include building a 300km pipeline, a gas extraction plant and headquarters buildings, one industry source, speaking on condition of anonymity, told Reuters.
It will be financed by state-owned Oman Oil Refineries and Petroleum Industries Co (Orpic), which owns oil refineries in Sohar and Muscat. Orpic has so far declined to comment.
A second source said bids would be invited next month and the project was scheduled to be completed in 2016.
Oman is expanding the capacity of the Sohar refinery to 180,000 barrels per day from the current level of 116,000 bpd. The Gulf state has another refinery in Muscat producing 106,000 bpd. It also plans to build a 230,000 bpd refinery at Duqm. Orpic is also designing a 280km pipeline to carry refined products between Muscat and Sohar.
